Business models in facilities management value chains

This paper aims to identify typical sourcing strategies and business models in facilities management (FM) and map archetypes of value chains with complementary sourcing strategies and value chains. The paper is based on literature and case studies from previous research. Theoretically, the paper takes a generic value chain as a starting point together with the recent ISO standard on sourcing process and a business model framework.

A conceptual framework is developed and typical sourcing strategies and business models for FM are investigated. Archetypical value chains are established by a combination of sourcing strategies and business models. The paper identifies eight archetypes of FM value chains divided in three groups according to whether the core business organisation occupies rented facilities and owned facilities or has facilities operation as a core business like serviced office providers, etc.

The results can be used on a general level by everybody who need to get an overview and understanding of the complex structure of the FM sector. Furthermore, the results can help all parties involved in the FM value chain to get a clearer understanding of their position in the chain and help them develop their sourcing strategies and/or business model, depending on their type of organisation.

While there is a huge amount of literature on sourcing in FM, there has only been limited research on business models and value chains in FM. The paper is original in combining an investigation of sourcing strategies, business models and value chains in FM.